What is the balance of payments?
The balance of payments (BOP) records all financial transactions made between consumers, businesses and the government in one country with others
Chart shows the annual trade balance for the UK
What is the basic structure of the balance of payments accounts?
This includes transactions that result in a change of ownership of financial assets and liabilities between UK residents and non-residents
Balancing item (estimated errors & omissions)
Changes to the value of reserves of gold and foreign currency
Overall balance of payments = zero
The annual UK trade balance in goods and services
The quarterly UK trade balance in goods and services and the quarterly current account balance - both measured as a % of GDP
The chart below shows the components of the UK current account on the balance of payments measured as a % of GDP